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Breakout Strategy - Simple and good RR

  • #1
  • First Post: Edited 11:22pm Nov 12, 2012 7:32pm | Edited 11:22pm
Set-up:

Time frame:

I use M5

Currency Pair:

I use GBPUSD (Could be used on any)

Indicators:

Daily-Open set to: 15 and 15 (Change Lime to RED) [SL]
Daily-Open set to: 30 and 30 (Change Lime and Red to ORANGE) [Entrys]
Daily-Open set to: 60 and 60(Change Red to Lime) [TP]
and for all leave the Aqua alone


Rules:

For a SELL wait till price hits LOWER orange line
SL is RED Line 15 pips ABOVE entry
TP is Green line 30 pips Below

For a BUY wait till price hits UPPER orange line
SL is RED Line 15 pips BELOW entry
TP is Green line 30 pips Above

This gives a 2:1 RR

If BUY is triggered cancel SELL order
If SELL is triggered cancel BUY order

My Goal

To Optimize the TP, Entry and SL for best RR and winning %
I'm hoping someone could create an EA for it sometime in the near future
Optimize it for other currency pairs aswell


Examples:

http://imageshack.us/a/img248/3502/example2i.png
http://imageshack.us/a/img21/5653/example1l.png
Attached File(s)
File Type: mq4 Daily-Open.mq4   3 KB | 1,572 downloads
  • #2
  • Nov 12, 2012 9:47pm Nov 12, 2012 9:47pm
Hello!

Are you opening 3 different 5m G/U charts and applying the Daily-Open indy?
  • #3
  • Nov 12, 2012 10:52pm Nov 12, 2012 10:52pm
Quoting bnbb2004
Hello!

Are you opening 3 different 5m G/U charts and applying the Daily-Open indy?
Hey bnbb,

Nope I am adding the Daily-Open indy 3 times with different settings and colors on 1 chart

Hope this helps

Thanks,

Dustin
  • #4
  • Nov 12, 2012 10:56pm Nov 12, 2012 10:56pm
For how long you are testing your strategy and what the results?
  • #5
  • Nov 12, 2012 11:17pm Nov 12, 2012 11:17pm
Quoting dvanderlinde
Rules:

For a SELL wait till price hits UPPER orange line

For a BUY wait till price hits UPPER orange line
Both orders at upper orange line??
"Put all your efforts in becoming effortless"
  • #6
  • Nov 12, 2012 11:20pm Nov 12, 2012 11:20pm
Could you possibly provide a template?

Thanks for sharing your interesting system.

Rex
  • #7
  • Nov 12, 2012 11:21pm Nov 12, 2012 11:21pm
Quoting kijkij
For how long you are testing your strategy and what the results?
I just was testing different indicators last week and figured that if I could come up with a consistent method like this then that would be cool. So I have only just been back testing. And would like people to try optimizing a system like this to make it as good as it can be.

Thanks,

Dustin
  • #8
  • Nov 12, 2012 11:22pm Nov 12, 2012 11:22pm
Quoting IamTHAT
Both orders at upper orange line??
Thanks changed
  • #9
  • Nov 13, 2012 3:08am Nov 13, 2012 3:08am
I love this system! Well done! Hope this system will not fail with time as others?
  • #10
  • Nov 13, 2012 4:21am Nov 13, 2012 4:21am
Quoting A-Grace
I love this system! Well done! Hope this system will not fail with time as others?
agree very nice system.
Iam just A pips on the rode :nerd:
  • #11
  • Nov 13, 2012 8:07am Nov 13, 2012 8:07am
As I back-tested the system, it has more losses than gains! Anybody else can do the same to see what I m saying! Thanks!!
  • #12
  • Nov 13, 2012 11:16am Nov 13, 2012 11:16am
Hello all. I'm new to the community. Would like to welcome myself. I couldn't help, but to take interest in this thread. Someone mentioned he has backtested this system, in which it has failed many times in the past. Yet, the reality is as follows. Nothing is 100% accurate. Also the definition of Breakout should be further discussed.

I for one use a breakout system on the 1m chart. As the 1m chart creates all other charts higher in time frame. It makes much sense to master that timeframe. What everyone should understand about the word BREAKOUT is the following. A breakout is simply when the last resistance or support created by the last breakout is broken. I have enclosed a chart below for you to follow.



You can see " The base" Which is the 0.0 fib. In this case the lowest low.
The 100.00 is the fib level in which the price first broke the upperband.

Now once the price closes above the 100.00 or below the 0.0 that is considered a breakout. Playing anything in between those fib levels is an extreme toss up, as that is where the accumulation occurs.

In this case, we hold the long position unless the price CLOSES below the 100.00
Should that then occur you short the position, until the price closes back over the 100.00 fib level.

Of course my breakout system is a bit more complex, but it is solely based on many losing trades along the way. Yet by using a visual aid, such as bbands and fibs, it gives you a slight advantage in being able to detect false breakouts from the real ones.
Attached Image
  • #13
  • Nov 13, 2012 11:33am Nov 13, 2012 11:33am
Now, Based on the last photo which I updated. This is the new fib calculation. Why is that? The new 100.00 (based on the photo attached here) That is the highest high of the run up. All you do is wait for an opposing candle to close (in this case a red candle) for you to mark the highest high. The BASE is the lowest low based on the last red candle printed.
Now anything which happens between the 100.00 and BASE means nothing! All you need to do is set a pending order above the 100.00 or below the BASE, and that would be your breakout position.
Attached Image
  • #14
  • Nov 13, 2012 11:35am Nov 13, 2012 11:35am
You now can see what the price did AFTER breaking the 100.00 That is breakout trading. Now of course breakouts on avg can be from 3 points to 30 points for one candle. Which is why one most use the correct leverage and margin in order to take advantage of these sharp price movements.
Attached Image
  • #15
  • Nov 13, 2012 1:17pm Nov 13, 2012 1:17pm
I think what most of us should do is the following. Instead of shooting down a system. Why not identify the holes, and patch it. That is how you create your holy grail. As I've mentioned before. I have come to where I am now, because of changing systems, and patching holes to the ones I have taken interest in.
  • #16
  • Nov 13, 2012 2:11pm Nov 13, 2012 2:11pm
Quoting AmberLynn
Hello all. I'm new to the community. Would like to welcome myself. I couldn't help, but to take interest in this thread. Someone mentioned he has backtested this system, in which it has failed many times in the past. Yet, the reality is as follows. Nothing is 100% accurate. Also the definition of Breakout should be further discussed.

I for one use a breakout system on the 1m chart. As the 1m chart creates all other charts higher in time frame. It makes much sense to master that timeframe. What everyone should understand about the word BREAKOUT...

Don't build on another man's foundation. Can you post the required number of posts and then start your own thread. By this, you will have all the time to explain your system. Let us concentrate on the system at hand. Thanks!
  • #17
  • Nov 13, 2012 2:51pm Nov 13, 2012 2:51pm
Quoting A-Grace
Don't build on another man's foundation. Can you post the required number of posts and then start your own thread. By this, you will have all the time to explain your system. Let us concentrate on the system at hand. Thanks!
It appears that this thread is going no where. Which is the reason why I took the time to explain what the definition of a breakout was. Along with examples which proves my point. Not to mention. Learning is done by BUILDING on someone elses foundation.
  • #18
  • Nov 13, 2012 4:17pm Nov 13, 2012 4:17pm
Quoting AmberLynn
I think what most of us should do is the following. Instead of shooting down a system. Why not identify the holes, and patch it. That is how you create your holy grail. As I've mentioned before. I have come to where I am now, because of changing systems, and patching holes to the ones I have taken interest in.
Hi Amberlyn

I see you are new to FF so let me welcome you and as one 1 minute man to another lets have a chat sometime??? I can't PM you as you are a junior member so not sure if you can PM me or not but would like to discuss 1 minute trading further.

However it is seen as bad etiquette to discuss one system on another guys thread so probably best we discuss this else where.

PM me for a chat.

Apologies dvanderlinde for distracting from your thread.
Feel the Fear and do it anyway!!!
  • #19
  • Nov 13, 2012 4:26pm Nov 13, 2012 4:26pm
Quoting clivepackham
Hi Amberlyn

I see you are new to FF so let me welcome you and as one 1 minute man to another lets have a chat sometime??? I can't PM you as you are a junior member so not sure if you can PM me or not but would like to discuss 1 minute trading further.

However it is seen as bad etiquette to discuss one system on another guys thread so probably best we discuss this else where.

PM me for a chat.

Apologies dvanderlinde for distracting from your thread.
I understand Clive. Well, if I could make a suggestion. Instead of saying" YOUR SYSTEM SUCKS, because I have backtested it." Let us try to patch the holes which it has.
  • #20
  • Nov 13, 2012 5:13pm Nov 13, 2012 5:13pm
Quoting dvanderlinde
My system is just based on an idea I came up with. It is far from perfect and appreciate anyone telling me their methods and/or tweaking this one. I just want to find a consistent method with good pips. So I don't mind people posting what they think!

Thanks!
Which is what I am saying. On page one, someone mentioned how they backtested it, and it doesn't work. Well a few charts will shed light on his theory, so this way we can fix the issues. I for one would love to be apart of a project of that sort. Dvanderlinede since this is your system. Why don't you reveal to us some issues which you may of had, this way we can patch it up for you.
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